The Government's finances are sinking deeper into the red it was confirmed today. The half-year Exchequer figures show a deficit of €1.2 billion in Government coffers and tax revenue lagging behind last year's weak outturn.
The figures released this evening by the Department of Finance show the scale of the shortfall as the one-off contribution from the Social Insurance Fund falls out of the figures.
Income tax receipts to the end of May were €11.9 billion compared to 12.3 billion on the same period last year. The Government spent €13.2 billion in the first five months of the year compared to €12.2 billion last year.
Revenues from VAT and stamp duty increased as a result of changes announced in the Budget and the ongoing buoyancy of the housing market.
VAT receipts rose to €4.5 billion from €4 billion and stamp duty receipts rose to €619 million from €425 million in 2002.